OpenWay, a top-ranked digital payments software provider, has launched a new solution: Way4 Social Cards. The solution digitalizes distribution of social benefits and eliminates common issues faced by social programs around the world.
Recently, governments, financial institutions and social program partners around the globe have been examining digital card solutions as an efficient and secure means of dispensing welfare and relief payments. The world health crisis has increased demand for contactless, P2P and other cashless transactions due to hygiene concerns. Also, in times of instability and social unrest, the instant and real-time features of digital payment solutions can provide authorities with a way to send funds to their intended beneficiaries quickly and securely.
To meet these needs, OpenWay introduced Way4 Social Cards, a secure, real-time and customizable software solution especially for governments, card issuers and merchant acquirers to deliver financial aid to corporations and individuals. Using this solution, financial institutions working together with governments can issue and accept any kind of welfare payment card – virtual and plastic, credit, debit, and prepaid.
Social cards eliminate paperwork and queues, since beneficiaries receive the money instantly in their accounts. The issuer can restrict purchases to certain stores or to certain goods to regulate consumption behaviour. Way4 processes the beneficiary’s shopping cart in real time, and applies special discounts to selected items or declines the purchases of non-subsidized items. Since purchases are analyzed on the product level (Level 3 data processing) and any discounts are automatically applied, there is no need to use separate cards for subsidized and non-subsidized items. This brings Way4 Social Cards closer to the function of a regular bank card.
Furthermore, in a win-win for both privacy and hygiene, beneficiaries can use their smartphones to make contactless payments since cards can be tokenized and stored on a mobile app. Because of its wallet-like features, the card can serve as a financial tool that tracks daily spending and makes prepayments of rent and regular expenses that can be easily set up. Beneficiaries in the same family can get subsidized funds to each other easily by P2P transfers, which may be enabled and limited to specific groups.
Social cards also make distribution of benefits more transparent for government officials, since it eliminates the need for cash or intermediaries which are harder to track. As for issuers participating in social welfare programs, they gain with Way4 a single platform for clearing, settlement and reporting on all social card transactions.
Maria Vinogradova, Head of Strategy and Market Intelligence at OpenWay, explains: “Social projects are created for the well-being of the most vulnerable groups of people in society, who need aid delivered in a timely manner. But unfortunately, many platforms which are used for social projects are technologically behind, and are not sophisticated or flexible enough to accommodate the needs of targeted distribution and consumption. We offer a digital solution that is safe, effective and convenient, because it utilizes a common infrastructure that is already in the hands of buyers and sellers – the smartphone.”